A lance for Semperit

A lance for Semperit

Automotive industry: You have been heading the marketing and sales department for the car tire replacement business in the DACH region for exactly five years. What balance do you draw or what have you achieved or changed?
Wolfgang Thomale:The markets are becoming more and more dynamic and more intense in their competitive structure. Customer structures are changing. Our mission is to be a relevant contact for our customers through our organization. This also means that we have to adapt to the dynamics of the market and train and develop our organization accordingly. This is a process that has a beginning but never an end. Training and further education has become more diverse. It is important to us to experience different perspectives of the business process. International experience is important. I think these steps will help us make progress towards being a reliable partner for our customers in the long term.

"The end consumer demands security. This is a great opportunity for premium brands."WOLFGANG THOMALE, CONTINENTAL

What differentiates the markets within the DACH region from one another?
Of course the size of the markets, but also the customer structures, differ. Not to forget there are differences in cultures. In Austria, for example, there are many business partners with whom we have worked in partnership for more than half a century. Our business is characterized by long, trusting customer relationships. We also see differences in the markets when it comes to purchasing behavior.

What are the specifics of the Austrian market?
The Austrian market is a particularly strong winter tire market with a high level of local loyalty. This is reflected in the strength of the Semperit brand. Which, in turn, is a major obligation on our part to maintain them. Another specific feature are the many traditional family businesses with strong, trusting loyalty and high standards for their suppliers.

How do you see the Semperit brand?
What significance does it have and – above all – what significance will it have in the future? Semperit is a very strong brand in the DACH region and of course in the home market of Austria. It has just celebrated its 111th anniversary, which we celebrated together with our customers in wintry Austrian surroundings. Semperit is a strong brand that has a special place in our company's multi-brand strategy. We are investing in new products and an expanded delivery range for this brand. The Speed ​​Grip 3 is a good example of this. We introduced this new winter tire last year and in 2018 we will expand the product range.

Does the tire brand have a future in general? Or are there already noticeable trends that younger people in particular don't care about the brand?
Continental is known for having a consistent multi-brand strategy in the various European markets for years. Along with several other brands, Semperit is a very important brand with a very significant contribution to our business in Europe. We will continue to rely on a strong Semperit brand in the future.

How do you generally assess tire awareness among end users? Is it essentially the same, is it getting worse or better?
We see that car tires are still a low-interest product. Many consumers do not know for sure which product is mounted. This means that retailers still require a lot of advice. One of our most important tasks is to support our trading partners and increase tire awareness among drivers.

Does the tire trade have a future? If so, what does it have to be like?
The tire specialist trade certainly has a future. The competitive environment has become more diverse and with it the tasks for every market participant to assert themselves in this market. We see that competition in traditional business models as well as online trading is increasing pressure on product margins. However, this does not mean that a business model becomes obsolete. The tire has the advantage that it must be refined by a specialist retailer before it can be used. This means placing more value and focus on service orientation in the future. What is necessary is the development of new services, the development from the product - i.e. from retail - to the service provider, i.e. the service specialist. This will enable you to survive in the face of competitive pressure. Some of our partners are already working more intensively in this direction, others are well on their way.

What do you consider to be the biggest problems facing tire retailers?
The transformation from trading to service operations is certainly a big challenge. Also being able to understand and represent the various demands and needs of the consumer. Retail has a high level of operational, solution-oriented competence, but the current developments and dynamics of the market require more and more conception and strategy. Dealing with the environment, understanding your needs and defining your own strengths and your own position in the market environment. Digitalization does not stop at our business. What is my approach to this topic, how do I use the opportunities of digitalization for my company? Fortunately, in our business this development is more of an evolution than a revolution like in other industries. This gives us more time, which we should invest cleverly and purposefully. It's about how we make optimal use of the opportunities offered by digitalization in our business.

“We see that car tires are still a low-interest product.”WOLFGANG THOMALE, CONTINENTAL

How do you see the car dealership's trend towards tires?
We have been observing for years that business types are mixing more and more. From the consumers' perspective, it is becoming increasingly difficult to clearly differentiate between business types. A car repair shop, a car dealership and a tire specialist have increasingly expanded their range of services over the last few years in order to be able to respond to the needs of their customers, because ultimately the consumer alone decides where to buy their car services and tires.

To what extent have customer needs generally changed?
Basically, the end user demands security. This gives brands a good chance to develop and optimize their products in this direction. Confirming the product properties through independent tests is of course very important. Another, newer topic is definitely sustainability. This includes the material used, mileage, rolling resistance and disposal. Here the retailer is also the driver's first point of contact. For us, this means that we have to provide retailers with more information on this topic so that they can carry out their advisory role.

What goals are there for the DACH region in 2018?
It is important to us to be a reliable partner for our customers in the long term. We see the market in transition and we see how important it is to understand and support our customers in these market dynamics. We want to work with our customers in the long term.